Indian IT biggies like TCS & HCLTech may have nothing to worry about when it comes to H-1B visa changes
H-1B visa policy reforms, despite holding a small share of total visa sponsorships, according to Macquarie Research. The report highlights the challenges of hiring locally in the US and underscores the critical role of H-1B visas in bridging the technical talent gap.
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Challenges of a Flat Wage Proposal
Macquarie raised concerns about proposals to implement a flat wage floor for H-1B visa holders, describing them as impractical. The US has significant regional cost-of-living differences, and a uniform wage could exacerbate economic disparities. «The wage floor must account for local conditions to avoid unintended consequences,» the report stated.
Instead, the brokerage recommends transforming the H1-B visa into a temporary, non-employer-specific work permit, similar to Norway’s skilled work permit system. This would encourage flexibility and competition while protecting worker rights.
FY24 H1-B Sponsorship: Who benefits most
An analysis of H-1B visa issuance for fiscal year 2024 (Oct 2023 to Sep 2024) reveals that over 61,000 firms collectively accounted for 79.6% of the visas. The highest sponsorship by a single company, Amazon, was just 2.7%, with 3,871 visas. Key Indian IT firms like Tata Consultancy Services Ltd. (TCS) and HCL Technologies Ltd. sponsored 1.0% (1,452 visas) and 0.9% (1,266 visas), respectively.
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